Karnataka mills may pay up to Rs 180 for a quintal of cane

Tight cane supply and high sugar prices are likely to prod mills in Karnataka to pay as much as Rs 150-180 a quintal for sugarcane in the new season starting October 1, South Indian Sugar Mills Association Secretary V Govinda Reddy said Tuesday.

Mills in south Karnataka paid Rs 130 a quintal for cane to farmers in the current season, while those in northern part of the state paid about Rs 155 as against the statutory minimum price of Rs 81.18 a quintal set by the central government, he said.

Karnataka government does not set any state-advised price for cane, a practice followed in Tamil Nadu, Uttar Pradesh, Punjab and Haryana. Even in the new season, mills are likely to pay cane prices at a much higher level than the government-set price of Rs 107.76 a quintal for 2009-10, Reddy said.